VPS or VSD = Virtual Dedicated Server

Virtual Dedicated Servers (VPS or VDS) are dedicated servers in a virtual environment that share the machine with other VPS servers. The operating system is dedicated to your hosting service. With dedicated RAM, CPU, and Disk space, you get the benefit of a dedicated server at a much reduced cost.

VPS = Virtual Private Server
An operating system with virtual paths to hardware.

A Dedicated VPS Server:

> Control panel
add/remove domain based web sites
add/remove email accounts and addresses
add/remove mysql db accounts
Host many small web sites on a single server!
Great for resellers

> Dedicated CPU, RAM, & drive space
reliability, speed, etc.

> Dedicated Operating System
custom settings for email, applications and custom software
server will only host you and your clients

Scale by adding more VPS servers to your account, example, setting up a dedicated mysql vps server can drastically reduce the load of your web server, making your site(s) faster.

These type accounts are ideal for smaller businesses or people not needing to pay the money a full dedicated server costs.